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Making Tax Digital for Income Tax

Use AccountsPrep to set up and manage Making Tax Digital (MTD) for Income Tax.

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Written by Brian Windsor
Updated over 2 weeks ago

This article links to the main tasks and guidance for MTD in AccountsPrep.

What MTD for Income Tax means

MTD for Income Tax changes how eligible sole traders and landlords report income to HMRC. You keep digital records, send quarterly updates, and complete a final declaration each year.


What you can do in AccountsPrep

  • Turn on income tax settings

  • Assign income tax categories to ledger accounts

  • Review the Income Tax Summary

  • Send quarterly income tax updates to HMRC


Before you start

  • The feature is available to UK customers only

  • You need to activate AccountsPrep through Sage Client Management

  • The feature isn’t available when you add AccountsPrep as a standalone add-on


Main tasks


Related guidance

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